Two banks bail out of TARP, return funds

Nov. 23, 2011 at 5:30 PM
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WASHINGTON, Nov. 23 (UPI) -- The U.S. Treasury Department said Wednesday two banks have repurchased shares held under the TARP program, returning $210 million to taxpayers.

The Bank of Kentucky Financial Corp., of Crestview Hills, Ky., has repurchased all of its outstanding preferred shares for $17 million. In addition the bank paid $18,888 in dividends accrued.

The First Midwest Bancorp Inc., of Itasca, Ill., has repurchased $193 million in preferred shares and paid $214,000 in dividends, the Treasury said.

In March 2011, the Treasury said, the Troubled Asset Relief Program had turned a profit. "Since that time, further repayment and income through TARP's bank programs, such as the payment announced today, provide additional positive returns for taxpayers," the Treasury said in a statement.

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